Public Trustee for the Northern Territory Annual Report ... · Public Trustee management are...

justice.nt.gov.au

DEPARTMENT OF

THE ATTORNEY-GENERAL AND JUSTICE

Public Trustee for the

Northern Territory

Annual Report

2018-2019

PUBLIC TRUSTEE FOR THE NORTHERN TERRITORY

ANNUAL REPORT 2018-2019

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CONTENTS

Public Trustee Annual Report Requirements .................................................... 4 Overview………………………………………………………………………………4 The Public Trustee and the Public Trustee Investment Board .......................... 6 Corporate Planning ........................................................................................... 7 Achievements 2018-2019 ................................................................................. 8 Directions 2019-2020 ........................................................................................ 8 Performance .................................................................................................... 9 Management and Investments ........................................................................ 12 Fees ............................................................................................................. 15 Staffing Structure of the Office ........................................................................ 17 Financial Statements and Reports: Financial Report 2018-2019 ............................................................................ 18 Auditor-General’s Report to the Public Trustee for the Northern Territory 2018-2019 ....................................... 19 Unclaimed Monies and Monies Deemed Bona Vacantia ...................................................................... 53



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PUBLIC TRUSTEE ANNUAL REPORT REQUIREMENTS

This is the Public Trustee annual report and audited financial statements for the 2018 -19 financial year. The preparation of an annual report is required by section 18 of the Public Trustee Act.

Section 18(2) requires the following to be included in the annual report:

(a) the audited statement of accounts in respect of each common fund for that financial year;

(b) the Auditor-General's report on those accounts; and

(c) the following investor information in respect of each common fund:

(i) the nature and amount or rate of any fee that the Public Trustee charges in respect of investment in the fund;

(ii) the class of investments in which the fund may be invested;

(iii) the extent (if any) to which a capital sum invested may be reduced to defray losses from investment of the fund;

(iv) the rights of an investor in the fund to withdraw all or part of the investor's investment in the fund and the period of notice (if any) that the investor is required to give the Public Trustee in respect of a withdrawal;

(v) the terms governing distribution of income and profit or loss of a capital nature attributable to each investment in the fund. The matters listed in section 18(2) are addressed under separate headings in this report following an overview.

OVERVIEW

2018-19 has been a year of significant change during which the Office of the Public Trustee has been able to continue to deliver its core services and maintain another high customer satisfaction rating of 98% (up from 97% in 2017-18).

In early 2019 a decision was taken by the Northern Territory Government to transfer all financial management responsibilities for represented adults under guardianship (by the Office of the Public Guardian) to the Office of the Public Trustee. At the time the decision was taken there were 450 of these matters to be transferred to the Office of the Public Trustee. This change centralises the function, avoids duplication and ensures separation between decisions for financial matters (by the Office of the Public Trustee) and decisions for personal matters (by the Office of the Public Guardian).

As a result of that decision, the Office of the Public Trustee recruited five additional staff members and set in place a new structure, along similar lines to Public Trustee’s in interstate jurisdictions, with dedicated deceased estate management, trust management and finance teams. It is expected that the new structure will allow for a greater degree of specialisation and improvements in service delivery.



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The Office of the Public Trustee has worked closely with the Office of the Public Guardian to plan and implement the changes and has also engaged with some stakeholders to identify and plan for issues. While effecting this change has been challenging for both offices, I note that it has been undertaken with professionalism, cooperation and a primary aim of achieving the best we can for our mutual clients. I also wish to record my appreciation to the staff of the Office of the Public Trustee who have continued to deliver a high level of service and professionalism during this period of change.

The National Disability Insurance Scheme (NDIS) was fully implemented in the Northern Territory on 1 July 2019. This also has had an impact on Office of the Public Trustee. Interactions with NDIS support coordinators have substantially increased as well as the demands on client trust funds for services or activities not funded by NDIS. The Office of the Public Trustee designed and successfully implemented a new process and forms (in consultation with the Office of the Public Guardian and NDIS support coordinators) aimed at achieving efficiency, responsible case management and auditable decision making.

It should be noted that the number of adult financial management trusts continue to increase. We are seeing an increase in applications to the Northern Territory Civil and Administrative Tribunal via hospital social workers as well as appointments being made for younger adults and people with mental illness. These trusts are demanding, require expertise and are intensive. As these matters increase it will place further pressure on limited resources to provide timely and effective service responses.

Given the structural and workload changes in the office, we have not been able to decrease the number of deceased estates on hand at the end of the financial year. It is however anticipated these numbers will decrease in 2020-21 as the new office structure and management of trusts stabilises.

In terms of financial performance, the total funds under management of the Public Trustee increased from $56 million in 2017-18 to $58 million in 2018-19. Funds under Public Trustee management are diversified across assets to reduce risk. Common Funds 2, 3 and 4 all recorded performance marginally above benchmark levels. This is a reasonable result given the challenging financial market conditions.

In 2018-19 almost $1.55 million in commission, fees and levy was paid into the Northern Territory Government’s central holding account as a result of the Public Trustee’s administration of estates and trusts.

Finally, I record my appreciation for the valuable service provided by members of the Public Trustee Investment Board Mr David Winter and Mr Alex Pollon.



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THE PUBLIC TRUSTEE AND THE PUBLIC TRUSTEE INVESTMENT BOARD

Public Trustee Services

The Office of the Public Trustee for the Northern Territory:

manages trusts for children and adults who do not have decision making capacity;

acts as attorney or agent for people when appointed by the person;

provides a will-making service and maintains a register of wills;

administers the estates of deceased persons when appointed by them in their will and in situations where there is nobody else willing or able to do so;

maintains a general register of Advance Personal Plans;

manages restrained and forfeited property under the Criminal Property Forfeiture Act;

manages funds paid to it by local government councils under the Local Government Act when land is sold under statutory charge; and

manages the Public Trustee Common Funds for client moneys.

The aim of the office is to provide an independent, efficient, cost effective and comprehensive executor and trustee service at minimal cost to government. The office charges a range of competitive fees and commissions for its services.

The Public Trustee

The Public Trustee for the Northern Territory is a corporation sole established by section 9 of the Public Trustee Act. The Office is funded as an output within the Northern Territory Department of the Attorney-General and Justice budget.

The Public Trustee has functions and responsibilities under many Acts, including the Public Trustee Act, the Trustee Act, the Administration and Probate Act, the Wills Act, the Aged and Infirm Persons’ Property Act, the Advance Personal Planning Act and the Criminal Property Forfeiture Act, in addition to duties as a trustee and executor that arise under the general law.

In addition:

the Financial Management Act regulates the expenditure and receipt of public moneys under the control of the Public Trustee as part of the Department of Attorney-General and Justice; and

the Public Sector Employment and Management Act regulates employment of the staff of the office.



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While Public Trustee staff carry out most day to day services, the office relies on outsourced professional services for specialised legal, financial planning, real estate and accounting advice/services where required.

Public Trustee Investment Board

The Public Trustee Investment Board is established by section 12 of the Public Trustee Act. The function of the Board is to control the investment of money held on behalf of clients in the common funds. The Board comprises the Public Trustee or, in the absence of the Public Trustee, the Deputy Public Trustee, and two persons appointed by the Minister.

The Board is committed to acting prudently in accordance with the Public Trustee Act and Trustee Act to obtain the maximum return on the investments of Common Fund monies commensurate with sound investment practices and to ensure that estates and trusts receive commercial rates of return on their funds. An Investment Policy has been developed to guide the Board and the Public Trustee’s Office in the management of its investments.

As at 30 June 2019, Investment Board members were Mr Jim Laouris, Public Trustee, Mr David Winter, Department of the Attorney-General and Justice and Mr Alex Pollon, Northern Territory Treasury. The Board is chaired by the Public Trustee.

Location of the Office of the Public Trustee

Street Address Postal Address Phone Fax

Nichols Place Cnr Cavenagh and Bennett Streets Darwin NT 0800

GPO Box 470 Darwin NT 0801

(08) 8999 7271 (08) 8999 7882

Agent for Public Trustee (for referral purposes only): Centrepoint Building Cnr Gregory Terrace and Hartley Street Alice Springs NT 0870

PO Box 8043 Alice Springs NT 0871

(08) 8951 5339 (08) 8951 5340

CORPORATE PLANNING

The Public Trustee contributes to the corporate planning processes of the Northern Territory Department of the Attorney-General and Justice, including development and implementation of strategic and risk management plans. The office develops a comprehensive business plan each financial year to guide its operations. It should be noted that information relevant to planning and performance of the office is also included in the Department of the Attorney-General and Justice Annual Report.



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ACHIEVEMENTS 2018-2019

Client satisfaction has been maintained at a high 98%.

Almost $1.55M in commissions, fees and levies paid into the Northern Territory Government’s central holding account.

Common funds have performed at marginally above benchmark levels.

Established a new office structure. Redesigned positons and implemented new teams.

Set in place revised procedures, forms and internal processes for the management of discrete work areas.

Established online nominee Centrelink access to improve efficiency in trust management.

Developed new factsheets in relation to deceased estate and trust management.

Progress made in completing financial procedures manual.

Finalised tender process for period contracts for taxation and real estate services. Participated with the Northern Territory Coroner’s Office in relation to a tender for funeral/burial/cremations services.

Finalised fraud and corruption mitigation plan.

Finalised several long standing complex deceased estates involving litigation.

DIRECTIONS 2019-2020

Finalise financial procedures manual.

Improve the closure rate for deceased estate matters.

Develop internal guidelines in relation to specific trust management matters.

Revise the trust annual review process.

Finalise (with the Northern Territory Coroner’s Office) tender for funeral/burial/cremations services.

Develop a strategy in relation to information system management.

Review Public Trustee fees and commission.



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PERFORMANCE

The following indicators for the various areas of activity represent an overview of the outputs of the office in carrying out its functions.

Wills prepared

The Public Trustee provides a low cost will making service for concession holders who may nominate their own executor and for members of the public who wish to nominate the Public Trustee as executor.

Number of wills 2015-2016 2016-2017 2017-2018 2018-2019

Wills prepared 233 206 228 209

Wills Register

The Wills Act provides that wills may be lodged with a person prescribed by the regulations, or if no such person has been prescribed, the Public Trustee. As at 30 June 2019, no person had been prescribed, and the Public Trustee continues to provide a free, secure wills storage and retrieval service.

Registration of Wills 2018-2019

Number of wills registered at beginning of year 15,484

Amendments 153

New wills registered (as distinct from prepared) 359

Wills revoked, taken or administered 339

Number of wills registered at end of year 15657

Administration of the estates of deceased persons

The Public Trustee administers the estates of people who have appointed the Public Trustee as executor of their will and the estates of people who have died intestate if there is no one willing or able to administer the estate.

Deceased Estates 2015-2016 2016-2017 2017-2018 2018-2019

Estates on hand at beginning of year 122 146 169 176

Estates commenced during year 127 120 114 109

Estates finalised during year 103 97 107 100

Estates on hand at end of year 146 169 176 185



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Finalisation of large estates

(over $150,000 in net value)

Of the current large estates, how long have they been on hand

30 June 2017

30 June 2018

30 June 2019

< 6 months 8 5 8

6 to 12 months 8 7 8

12 to 24 months 5 12 9

Over 2 years 19 15 15

Delays in finalising files over 2 years are mainly attributable to missing relatives, family provision disputes, or other litigation.

Finalisation of small estates

(below $150,000 in net value)

Of the current small estates, how long have they been on hand

30 June 2017

30 June 2018

30 June 2019

< 6 months 46 46 36

6 to 12 months 18 25 30

12 to 24 months 36 24 31

Over 2 years 29 42 48

Delays in finalising files over 2 years are mainly attributable to missing relatives, taxation issues, royalties from artwork and delays in Superannuation Fund decisions.

Client satisfaction

This indicator measures client satisfaction with the services provided by the Office of the Public Trustee.

2016-2017 2017-2018 2018-2019

Client satisfaction 98% 97% 98%



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Management of trusts

The Public Trustee acts as attorney, agent or manager for persons who are minors or incapacitated. The Public Trustee also manages the estates of aged, infirm or mentally ill persons on appointment by the Northern Territory Civil and Administrative Tribunal under the Guardianship of Adults Act.

Additionally, the Public Trustee manages property and monies held under the Criminal Property Forfeiture Act as separate trusts.

Trusts (including the Aged, Infirm and Agencies)

2015-2016

2016-2017

2017-2018

2018-2019

Trusts on hand at beginning 624 600 559 561

Trusts received during the year 58 79 106 117

Trusts paid out during the year 82 120 104 77

Trusts on hand at end of the year 600 559 561 601

Criminal Property Forfeiture

Under the Criminal Property Forfeiture Act, property that is crime used or crime derived can be seized and restrained under a court order and may eventually be forfeited to the Territory. The Public Trustee’s role is to manage restrained property and dispose of property forfeited under the Act.

The table below lists the main activity in the office for the period from July 2018 to June 2019.

Matters under the Criminal Property Forfeiture Act

2016-2017 2017-2018 2018-2019

Number of new criminal property forfeiture matters dealt with by the Public Trustee

11 4 2

Number of vehicles restrained under the Act on hand as at 30 June

5 6 3

Real estate properties restrained under the Act on hand as at 30 June

2 3 6

Number of vehicles disposed of during the year 9 3 1

Amount of forfeited money paid to Consolidated Revenue in the year *

$378,000 $165,851 $478,115

* The Public Trustee retains a minimum amount of $100,000 in the control account to meet the costs and expenses associated with functions under the Criminal Property Forfeiture Act.



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MANAGEMENT AND INVESTMENTS

The Trustee Act requires all trustee organisations to consider a range of matters in regard to the investment of capital held in trust. Effectively, this means that capital must be managed in accordance with the short, medium and long-term investment objectives pertaining to the circumstances of the ultimate beneficiary.

This necessitates a variety of investments aimed at meeting the needs and interests of individual beneficiaries. These can include real property, motor vehicles and investments such as personal superannuation accounts which are held outside the Public Trustee Common Funds. However, the bulk of client assets are managed through the Public Trustee Common Funds.

Common Funds Management

The Public Trustee Act allows for the Public Trustee to undertake this process by enabling the establishment of multiple Common Funds, each with a discrete investment profile. The Public Trustee oversees the management of four Common Funds, on advice from the Public Trustee Investment Board.

The Common Funds allow for the effective management of assets held within each fund in accordance with the specific investment mandate. Based upon the development of personal investment plans, the Public Trustee makes the allocation of the capital of an estate or trust into one or more of the Common Funds.

This process of investing capital enables the Office of the Public Trustee to maximise investments, according to need and circumstances, on behalf of clients.

The Public Trustee Act also provides for deduction of levies and management fees to account for the cost of maintaining the funds.

Common Fund 2016-2017 2017-2018 2018-2019

Common Fund 1 balance ($m) 33.5 34.9 35.3




Total of Funds($m) 52.5 56.0 58.5

Commission and Fees paid to Consolidated Revenue ($,000)

584.3 668.7 573.8

Management Fees paid to Consolidated Revenue ($,000)

252.0 306.1 493.1

Levy paid to Consolidated Revenue ($,000) 470.5 409.9 491.5



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Standard Investment Strategies

The primary investment objective of the Public Trustee for the Northern Territory is to consider, on each trust and estate, the return on investment before fees and charges on a basis considered consistent with its needs and objectives.

This is equal to the prevailing relevant indices against which the sub-sectors of each individual fund are benchmarked, so as to achieve the stated purpose of each investment profile whilst at the same time:

maximising the investment rate of return within the nominal risk constraints;

minimising the volatility of returns within each asset sector;

investing within legislative constraints;

managing the funds in an economic and efficient manner, ensuring the preservation of the Public Trustee’s reputation as a professional administrator; and

managing the funds in accordance with section 8 of the Trustee Act.

The Common Funds are managed on a fund to fund basis under a formal Investment and Financial Service Association standard mandate. A financial service custodian and financial accountant manage the accounts on an outsourced basis.

The Public Trustee Investment Board guides the Public Trustee in matters pertaining to the investment mandate, strategic and tactical allocation of assets, appointment of fund managers and general management of funds.

The Public Trustee acts as a manager and investor on behalf of represented clients. There is a clear delineation between these functions within the Office of the Public Trustee. The Public Trustee approves investment allocations into each fund on a client basis with the guidance of a financial planner appointed by the Public Trustee.

Funds in Common Fund 1 are invested predominantly in cash specific investments. The capital in Common Fund 1 is guaranteed and investments generate guaranteed returns, being 1% below the Reserve Bank of Australia cash rate for trusts and 3% below that rate for estates.

The following is a description of the asset allocations pertaining to the other Common Funds.



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CONSERVATIVE PORTFOLIO

Investment Profile: Conservative, stable return, medium term. The Conservative investment portfolio targets a 70 percent allocation to income oriented assets and 30 percent allocation to growth oriented assets.

PERFORMANCE

Performance before fees, taxes, but after transaction and operational costs

Year ended 30 June 2019 Portfolio (%)

Benchmark (%)

Deviation (%)

3 Months 3.57 3.5 0.07

12 Months 8.35 8.14 0.21

BALANCED PORTFOLIO

Investment Profile: Some scope for risk, Medium outlook. The portfolio targets a 50 percent allocation to growth oriented assets.

PERFORMANCE

Performance before fees, taxes but after transaction and operational costs


Benchmark (%)

Deviation (%)

3 Months 4.36 4.32 0.04

12 Months 9.28 9.17 0.11

GROWTH PORTFOLIO

Investment Profile: Growth expected, higher risk, long-term investment. The portfolio targets a 30 percent allocation to income oriented assets and 70 percent allocation to growth oriented assets.

PERFORMANCE

Performance before fees, taxes, but after transaction and operational costs


Benchmark (%)

Deviation (%)

3 Months 4.93 4.89 0.08

12 Months 9.62 9.53 0.09



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COMMON FUND FEES TABLE FOR THE PUBLIC TRUSTEE FOR THE NORTHERN TERRITORY

Fees and Expenses Table

Fund Fee Type Fee pa Management Expense Ratio

Public Trustee Common Fund No 1: Cash Common Fund

Management Fee Levy

Not More than 2.2% (GST Inclusive) 1.21%(GST Inclusive)

2.03% (GST Inclusive)

Public Trustee Common Fund No 2: Conservative portfolio

Management Fee Levy

Not More than 2.2% (GST Inclusive) .11%(GST Inclusive)


Public Trustee Common Fund No 3: Balanced Portfolio

Management Fee Levy



Public Trustee Common Fund No 4: Growth Portfolio

Management Fee Levy



Calculated in accordance with the Investment and Financial Services Association Policy No 4 (2000) as at 30 June 2019 (GST inclusive). Levy and Management Fees are combined.

Management expense ratio

The Management expense ratio measures the total fees and expenses charged annually to the Trust excluding transaction costs. It is calculated on the total of the management fee, underlying asset management fee, custodial fees and other expenses divided by average fund size.

Unit price valuation

The net asset value representing the foundation for the unit price for each fund is valued on a weekly basis. The majority asset under each asset sector within each fund is valued daily. The Public Trustee reserves the right to calculate the net asset value for each fund as required.



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Fee Calculation basis All fees are charged daily against the net asset value of each fund, accumulated and distributed to the Public Trustee for the Northern Territory on a monthly basis.

ADMINISTRATIVE FEES AND CHARGES

The fees charged by the Public Trustee are set by a Determination notified in the Government Gazette in accordance with section 74(2) of the Public Trustee Act. The main elements of the fee schedule (*) which became operative on 26 June 2013 (being the date of their Gazettal) were as follows:

$124.30 for wills if naming Public Trustee as Executor

$24.20 for wills for Concession card holders.

$61.60 for amendments to wills prepared by Public Trustee

$311.30 for ‘complex’ wills

$622.60 for administration work where grant of representation is not obtained

In respect of the administration of estates

- 4.4% for the first $200,000 worth of assets administered

- 3.3% for the next $200,000 worth of assets administered

- 2.2% for the next $200,000 worth of assets administered

- 1.1% for assets in excess of $600,000

- Commission of 6.6% on income received.

In respect of the administration of trusts

- 1.1% of the capital for trusts with a defined termination date;

- 2.2% of the capital for trusts with no defined termination date other than death;

- Commission of 6.6% on income received.

(*) Note – a general fee waiver was issued on 1 March 2019 in accordance with Regulation 6 of the Public Trustee Regulations of the effect that (i) 0% commission would be charged on pension (ie. Centrelink) based income received on behalf of trust clients and (ii) capital commission would only be charged for new trusts with a net estate value over $40,000.

(*) Note – GST is applied to Public Trustee fees and commissions. Clients are charged the fee plus GST. The above fees quoted are GST inclusive.



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STAFFING STRUCTURE OF THE OFFICE

Public Trustee

Deputy Public Trustee

Principal Trust Officer - Estates

Senior Trust Officers x 3 FTE

Warehouse Manager

Senior Finance Officer

Assistant Finance/Wills

Officer

Trust Officers x 2 FTE

Finance Officer

Principal Trust Officer - Trusts

Senior Trust Officers x 2 FTE



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FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2019



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STATEMENT BY PUBLIC TRUSTEE FOR THE NORTHERN TERRITORY

In my opinion the accompanying Financial Report of the Common Funds comprising Statements of Profit or Loss and Other Comprehensive Income for Common Funds 1 to 4, Statements of Financial Position for Common Funds 1 to 4, Statements of Changes in Equity for Common Funds 1 to 4, Statements of Cash Flows for Common Funds 1 to 4 and Notes to the Financial Statements are based on proper accounts and records and have been properly drawn up so as to present fairly the transactions of the Public Trustee Common Funds for the year ended 30 June 2019 and their financial position at that date.



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COMMON FUND 1 : THE CASH COMMON FUND

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


Note 2019 2018

$ $

INCOME

Interest – Bank 73,415 43,086

Income – Managed Funds and Term Deposit 611,040 587,177

Other Income 4 473,130 422,050

Change in Net Market Value of Investments 14 464 -

1,158,049 1,052,313

EXPENDITURE

Government Management Fees and Levy 924,478 797,318

Legal and Advisory Expenses - -

Other Expenses 5 129,064 116,191

Change in Net Market Value of Investments 14 - 27,336

1,053,542 940,845

SURPLUS FOR THE YEAR 104,507 111,468

Other Comprehensive Income - -

TOTAL COMPREHENSIVE INCOME 104,507 111,468

To be read in conjunction with the accompanying notes to the accounts.



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STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

Note 2019 $

2018 $

ASSETS

Current

Cash and Cash Equivalents 3,987,375 3,660,893

Investments 6 30,709,717 30,631,203

Receivables 42,550 39,407

34,739,642 34,331,503

Non Current

Investment Property 9 590,000 650,000

TOTAL ASSETS 35,329,642 34,981,503

LIABILITIES

Current

Accrued Expenses 88,097 158,025

TOTAL LIABILITIES 88,097 158,025

NET ASSETS 35,241,545 34,823,478

EQUITY

Funds under Administration 8 34,824,699 34,406,858

Undistributed Surplus 10 416,846 416,620

TOTAL EQUITY 35,241,545 34,823,478




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STATEMENT OF CHANGES IN EQUITY


Note 2019 $

2018 $

Balance of Equity at 1 July 34,823,478 33,462,100

Funds Under Administration

Balance at 1 July 34,406,858 33,038,260

Proceeds from client activity 36,925,718 35,723,310

Payments made on behalf of clients (36,507,877) (34,354,712)

Balance at 30 June 34,824,699 34,406,858

Undistributed Surplus

Balance at 1 July 416,620 423,840

Surplus for the Year 104,507 111,468


Total Comprehensive Income 104,507 111,468

Less Distribution Paid (104,281) (118,688)

Balance at 30 June 10 416,846 416,620

BALANCE OF EQUITY AT 30 JUNE 35,241,545 34,823,478




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STATEMENT OF CASH FLOWS


Notes 2019

$

2018

$

Cash Flows From Operating Activities

Income 1,172,313 1,068,637

Expenses (1,141,341) (839,536)

Net cash provided by operating activities 11 30,972 229,101

Cash Flows from Investing Activities

Payments for investments (18,050) (2,019,077)

Proceeds from sale of investments - 3,000,000

Net cash (used in)/provided by investing activities (18,050) 980,923

Cash Flows from Financing Activities

Proceeds received from clients activity 24,883,409 24,383,669

Payments made on behalf of clients (24,569,849) (23,128,990)

Net cash provided by financing activities 313,560 1,254,679

Net increase in cash held 326,482 2,464,703

Cash and Cash Equivalents at the beginning of the year

3,660,893

1,196,190

Cash and Cash Equivalents at the end of the year 3,987,375 3,660,893




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COMMON FUND 2 : THE CONSERVATIVE FUND



Note 2019 2018

$ $

INCOME

Interest - Bank 1,232 982

Trust distributions 155,482 237,866

Changes in net market value of investments 14 320,014 10,246

476,728 249,094

EXPENDITURE

Management fees 109,266 94,713

Other expenses 209 144

109,475 94,857







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AS AT 30 JUNE 2019

Note 2019 2018

$ $

ASSETS

Current

Cash and Cash Equivalents 24,362 14,383

Investments 6 5,691,879 5,793,714

TOTAL ASSETS 5,716,241 5,808,097

LIABILITIES

Current

Payables 9,442 9,537


NET ASSETS 5,706,799 5,798,560

EQUITY


TOTAL EQUITY 5,706,799 5,798,560




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2019 2018

$ $

As at 1 July 5,798,560 4,865,425

Surplus for the year 367,253 154,237

Distributions to unit holders (61,061) (203,841)

Application for units 2,027,799 2,687,475

Redemption of units (2,425,752) (1,704,734)


To be read in conjunction with the accompanying notes to the accounts



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Note 2019 2018

$ $

Cash flows from operating activities

Interest received 1,232 982

Management fees (116,549) (99,821)

Other expenses (210) (144)

Net cash used in operating activities 11 (115,527) (98,983)

Cash flows from investing activities

Payments for investments (1,302,200) (1,548,500)

Proceeds from sale of investments 1,886,720 859,600

Net cash provided by/(used in) investing activities 584,520 (688,900)

Cash flows from financing activities

Proceeds from unit applications 2,027,799 2,687,475

Payments on redemptions (2,425,752) (1,704,735)

Income distributed (61,061) (203,841)

Net cash (used in)/provided by financing activities (459,014) 778,899

Net increase/(decrease)in cash held 9,979 (8,984)

Cash and Cash Equivalents at the beginning of the year 14,383 23,367

Cash and Cash Equivalents at the end of the year 24,362 14,383




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COMMON FUND 3 : THE BALANCED FUND



Note 2019 2018

$ $

INCOME

Interest - Bank 783 825



695,136 448,627

EXPENDITURE



142,254 115,570







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AS AT 30 JUNE 2019

Note 2019 2018

$ $

ASSETS

Current


Investments 6 8,486,313 6,721,793

TOTAL ASSETS 8,515,678 6,736,244

LIABILITIES

Current

Payables 13,863 11,040


NET ASSETS 8,501,815 6,725,204

EQUITY


TOTAL EQUITY 8,501,815 6,725,204




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2019 2018

$ $

As at 1 July 6,725,204 5,582,830




Redemption of units (851,603) (873,822)




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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019

Note 2019 2018

$ $


Interest received 783 825





Payments for investments (1,341,900) (966,400)

Proceeds from sale of investments 280,600 267,800

Net cash used in investing activities (1,061,300) (698,600)



Payments on redemptions (851,603) (873,822)


Net cash provided by financing activities 1,223,729 809,317

Net increase/(decrease) in cash held 14,914 (10,523)





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COMMON FUND 4 : THE GROWTH FUND



Note 2019 2018

$ $

INCOME

Interest - Bank 1,143 1,048



800,593 790,257

EXPENDITURE



163,977 154,965






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AS AT 30 JUNE 2019

Note 2019 2018

$ $

ASSETS

Current


Investments 6 9,041,131 8,626,935

TOTAL ASSETS 9,071,402 8,641,157

LIABILITIES

Current

Payables 14,762 14,170


NET ASSETS 9,056,640 8,626,987

EQUITY


TOTAL EQUITY 9,056,640 8,626,987



36

3636

36





2019 2018

$ $

As at 1 July 8,626,987 8,631,109




Redemption of units (1,710,875) (1,442,873)




37

3737

37





Note 2019 2018

$ $


Interest received 1,143 1,048





Payments for investments (1,060,100) (515,500)

Proceeds from sale of investments 1,456,300 1,305,300

Net cash provided by investing activities 396,200 789,800



Payments on redemptions (1,710,875) (1,442,873)


Net cash used in financing activities (206,963) (639,416)

Net increase/(decrease) in cash held 16,048 (15,578)






38

3838

38

NOTES TO THE FINANCIAL STATEMENTS


1. ACTIVITIES OF THE PUBLIC TRUSTEE

The functions of the Public Trustee (the Entity) are defined in the Public Trustee Act 1979 as in force at 12 April 2017 and include the administration of deceased estates and trusts and the preparation of wills. The Public Trustee also acts as financial manager under order from Northern Territory Civil and Administrative Tribunal. This financial report shows the value of trusts and estates and management funds under administration at the year-end.

2 STATEMENT OF ACCOUNTING POLICIES

(a) Basis of Preparation

The financial report is a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards (including Australian Accounting Interpretations).

The financial report is prepared on an accrual basis and is based on the historical cost convention, except for the valuation of managed fund investments and the investment property, which are recorded at fair value.

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Public Trustee’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are significant to the financial statements are disclosed in Note 3.

The financial report is presented in Australian dollars, which is Public Trustee’s functional and presentation currency. All amounts have been rounded off to the nearest dollar.

(b) Operation of the Common Funds

The common funds have been established pursuant to the Public Trustee Act 1979 as in force at 12 April 2017. The Common Fund was separated into four Common Funds on 1 October 2002. Three of the Common Funds are managed by an external financial manager and all Common Funds are reported separately.

External advisers have been appointed to assist with the management of Common Funds 2, 3 and 4, while Common Fund 1 is managed internally. The external advisers appointed are Sandhurst Trustees Limited.

(c) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Public Trustee for the NT Common Funds and the revenue can be reliably measured. Specific revenues are recognised as follows:

Trust distributions

Trust distributions from managed investment funds are recognised on an accrual basis up to reporting date.

Interest income

Income from cash on deposit is recognised on an accrual basis. Change in the net market value of investments

Gains and losses on investments are calculated as the difference between the net market value at sale, or at the year end, and the net market value at the previous valuation point. This includes both realised and unrealised gains and losses.



39

3939

39

2. STATEMENT OF ACCOUNTING POLICIES (continued)

(d) Cash and Cash Equivalents

Cash and Cash Equivalents includes notes and coins held, advances made and any deposits with a bank or financial institution held at call or with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of change in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown as current liabilities on the statement of financial position (where applicable).

(e) Financial Instruments

Financial assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the Entity classifies its financial assets in the following categories:

(a) financial assets at fair value through profit or loss;

(b) financial assets at fair value through other comprehensive income; and

(c) financial assets measured at amortised cost.

The classification depends on both the Entity's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the Entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective Interest Method

Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased. The simplified approach for trade receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the writeoff directly reduces the gross carrying amount of the financial asset.



40

4040

40


(e) Financial Instruments (continued)

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised Cost

Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Additional disclosures in relation to financial instruments are provided at Note 12. (f) Receivables

Receivables represent the amounts due but not yet received from the underlying investments of Common Funds 1 to 4.

(g) Investment property

Coonawarra Road Store is accounted for as an investment property which is comprised of freehold land and building held for long term rental and capital appreciation that are not occupied by the Common Fund.

The investment in Coonawarra Road Store is measured at fair value. At each reporting date, the fair value of the asset is reviewed to ensure that it does not differ materially from the asset’s fair value at that date. The asset is derecognised when disposed of or when there is no future economic benefit expected.

(h) Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-

use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.



41

4141

41


(i) Payables Payables are carried at amortised cost using the effective interest rate method. Due to their

short term nature they are not discounted. Liabilities are recognised to the extent that the goods and services have been received (and irrespective of having been invoiced). The amounts are unsecured and usually paid within 30 days of recognition.

(j) Income Tax

Under current income tax legislation, no income tax is payable by any of the Common Funds.

(k) Distributions

Common fund distributions are made to contributors on a half yearly basis. Such distributions are determined by reference to the surplus of the Common Funds. Payment for the second half of the year is not made until after the reporting date as advice of distribution entitlements from underlying investments is not received by the Public Trustee until after the reporting date.

Unrealised gains and losses on investments are not distributable until realised.

(l) Management fees

A management fee is charged against the Cash Common Fund at a rate of no more than 2.2% of the value of the Common Fund as at the first business day of each month.

(m) Transfer to/from unit holders’ funds

Unrealised gains and losses in the net market value of investments, accrued income not yet assessable, expenses provided for or accrued but not yet deductible and net capital losses are transferred to unit holders’ funds and are not included in the determination of distributions to unit holders.

(n) Goods and Services Tax (GST)

The Common Funds are not registered entities under the Goods and Services Tax (“GST”) legislation. Expenses incurred and incomes earned by the Common Funds are recognised as inclusive of the amount of GST.

(o) Terms and conditions on units

With the exception of the Cash Common Fund, each unit issued confers upon the unit holder an equal interest in the Common Funds, and is of equal value. A unit does not confer a right to any particular asset or investment of the Common Funds. Unit holders have various rights, including the right to have their units redeemed and receive income distributions.

The rights, obligations and restrictions attached to each unit holder are identical in all respects.

The Cash Common Fund does not issue units.

(p) Unit Prices

Unit Prices are calculated on the net assets of the Common Funds adjusted for any transaction costs, divided by the number of units on issue.

(q) Commission, Levy and Management Fees

Commission, Levies and Management fees are charged to the Trusts and Estates in accordance with sections 24 and 28 of the Public Trustee Act 1979 and associated regulations.



42

4242

42


(r) New, revised or amending Accounting Standards and Interpretations adopted In the current period the Entity has adopted all the new and revised Standards and Interpretations issues by the Australian Accounting Standards Board (the AASB) that are relevant to its operation and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has resulted in no significant change to the Entity accounting policies. A number of Australian Accounting standards and Interpretations are in issue but not effective for the current period end. The reported results and position of the Common Funds will not change on adoption of these pronouncements as they do not result in any changes to the Entity’s existing accounting policies. Adoption would, however, result in changes to information currently disclosed in the financial statements. The Entity’s does not intend to adopt any of these pronouncements before their effective dates.

3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgements,

estimates and assumptions that affect the reported amounts in the financial statements. The Public Trustee continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. The Public Trustee bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a) Valuation of Investments

The market value of managed investment schemes (unlisted unit trusts) is determined by reference to the last available sales price of the scheme, as quoted on the day of valuation, which inherently includes transaction costs. Changes in the net market value of investments are recognised in the profit or loss and not transferred to unit holders’ funds reserve until realisation.

The details on the market value of the investments are disclosed in Note 6.

(b) Valuation of the Coonawarra Road Store

Investment in Coonawarra Road Store is measured at fair value at each reporting date. Fair Value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date.

For the year ended 30 June 2019, the fair value of the Coonawarra Road store was based on the independent valuation performed by Herron Todd White. The valuation approach used has been assessed having regard to market evidence, prevailing economic conditions and to anticipate yields in the investment market. The carrying value of the investment property is assessed at reporting date to ensure there has been no material changes in the fair value since the valuation date. The fair value of the Coonawarra Road Store amounted to $590,000 in 2019 ($650,000 in 2016). The next independent valuation will be in 2022.



43

4343

43

4. OTHER INCOME – COMMON FUND 1

2019

$

2018

$

Management Fees received from the other 3 Common Funds

442,215

391,136

Rent Received 30,915 30,914

Total 473,130 422,050

5. OTHER EXPENSES – COMMON FUND 1

2019

$

2018

$

Bank Charges 2,304 1,860

Property Expenses 10,993 14,880

Fund Management Fees 115,767 99,451

Total 129,064 116,191

6. INVESTMENTS

The funds in which the Common Funds invest hold various direct investments but the individual

Common Funds have no direct control over these underlying investments. A breakdown of the investments as at 30 June 2019 is as follows:

Common Fund 1 Common Fund 2

2019 2018 2019 2018

$ $ $ $

Unlisted Managed investment Schemes

30,709,717

30,631,203

5,691,879

5,793,714

30,709,717 30,631,203 5,691,879 5,793,714


2019 2018 2019 2018

$ $ $ $

Unlisted Managed investment Schemes

8,486,313

6,721,793

9,041,131

8,626,935

8,486,313 6,721,793 9,041,131 8,626,935



44

4444

44

7 UNITHOLDERS’ FUNDS (a) Units on Issue

Movements during the period in the number of units on issue were:


2019 2018 2019 2018

Units Units Units Units

Balance at the beginning of the year

6,163,781 5,135,169 6,575,292 5,506,830

Applications 2,198,421 2,876,451 2,111,715 1,958,314

Redemptions (2,590,990) (1,847,839) (834,699) (889,852)

Balance at the end of the year 5,771,212 6,163,781 7,852,308 6,575,292

Common Fund 4

2019

Units

2018

Units

Balance at the beginning of the year 8,498,452 8,553,549

Applications 1,677,003 1,451,540

Redemptions (1,727,312) (1,506,637)

Balance at the end of the Year 8,448,143 8,498,452

The Cash Common Fund 1 does not issue units.

(b) Components of unit holders' funds

Included within closing unit holders' funds are unrealised gains/ (losses) on investments.

2019

$

2018

$

Common Fund 2 372,328 56,220

Common Fund 3 507,965 93,793

Common Fund 4 399,582 173,737

The Cash Common Fund 1 does not issue units.



45

4545

45

8. FUNDS UNDER ADMINISTRATION

Common Fund 1

Common Fund 1

Common Fund 2

Common Fund 2

2019 2018 2019 2018

$ $ $ $

Deceased Estates 14,493,495 10,168,340 - -

Beneficial Trusts 509,559 516,878 584,290 463,935

Legal Trusts 6,935,477 7,192,745 2,016,293 2,509,795

Financial Management Trusts 6,865,510 8,688,395 3,106,214 2,824,830

Crimes Property Forfeiture 759,277 971,263 - -

Miscellaneous Trusts 5,261,381 6,869,237 - -

Total Funds 34,824,699 34,406,858 5,706,797 5,798,560

Common Fund 3

Common Fund 3

Common Fund 4

Common Fund 4

2019 2018 2019 2018

$ $ $ $

Beneficial Trusts 170,119 205,819 21,723 62,300

Legal Trusts 2,958,705 1,982,249 1,819,614 2,153,704

Financial Management Trust 5,372,991 4,537,136 7,215,303 6,410,983

Total Funds 8,501,815 6,725,204 9,056,640 8,626,987

Total Total

2019 2018

$ $

Deceased Estates 14,493,495 10,168,340

Beneficial Trusts 1,285,691 1,248,932

Legal Trusts 13,730,088 13,838,493

Financial Management Trust 22,560,018 22,461,344

Crimes Property Forfeiture 759,277 971,263

Miscellaneous Trusts 5,261,381 6,869,237

Total Funds 58,089,950 55,557,609

9. INVESTMENT IN COONAWARRA ROAD

2019

$

2018

$

Beginning of Year 650,000 650,000

Change in Fair Value (60,000) -

End of Year 590,000 650,000



46

4646

46

9. INVESTMENT IN COONAWARRA ROAD (Continued)

The Property was leased out for office accommodation and storage for 4 years, from 1 January 2019 to 31 December 2023. The rent amounted to $31,042.00 per annum exclusive of GST payable by equal monthly instalments in advance. Rent received for the year ended 30 June 2019 amounted to $30,914 (2018: $30,914).

The future minimum lease receipts: 2019

$

2018

$

Not later than 1 year 31,042 30,914

Later than one year but not less than five years 108,647 12,983

Refer to Note 3 for basis of valuation.

10. UNDISTRIBUTED SURPLUS

Undistributed surplus is income received but not yet distributed to the Trusts and Estates. 11. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of surplus to net cash provided by/(used in) operating activities

Common Fund 1

2019 $

2018

$


- Changes in net market value of investments – unrealised (note 14)

(464) 28,918

- Movements in receivables (3,143) (2,469)

- Movements in payables (69,928) 92,766

- Realised gain on sale of investments (note 14) - (1,582)

Net cash provided by operating activities 30,972 229,101

Common Fund 2



52,314 (56,220)

- Movements in payables (93) 1,461

- Realised (gain)/loss on sale of investments (note 14) (372,328) 45,974

- Non cash dividends received from investments (162,673) (244,435)

Net cash used in operating activities (115,527) (98,983)



47

4747

47

11. NOTES TO THE STATEMENT OF CASH FLOWS (Continued)

Common Fund 3

2019

$

2018

$



(1,982) (93,793)

- Movements in payables 2,823 1,754

- Realised loss on sale of investments (note 14) (507,965) 13,044



Common Fund 4



50,548 (173,737)

- Movements in payables 591 (420)

- Realised loss on sale of investments (note 14) (399,582) 72,583



12. FINANCIAL RISK MANAGEMENT

Risk Management Objectives and Policies

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by the Entity include cash, investments, receivables and payables.

The Common Funds have exposure to the following financial risks through the use of financial instruments:

Market risk (interest rate risk and price risk)

Credit risk

Liquidity risk

Exposure to these financial risks is managed in accordance with the Investment Policy of the Entity. The Public Trustee Investment Board, established under section 12 of the Public Trustee Act 1979, is responsible for controlling the investment of money held on behalf of clients in the Common Funds.

The principal investment objective is to consider on each trust and estate, the return on investment having regard to the level of risk appropriate to the needs and objectives of the client. This includes maximising the investment rate of return within the nominal risk constraints and minimising the volatility of returns within each asset sector.



48

4848

48

12. FINANCIAL RISK MANAGEMENT (Continued)

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to movements in market interest rates.

The Common Funds are primarily exposed to interest rate risk from cash and cash equivalents. As these are held in floating interest arrangements, the Common Funds are exposed to movements in the amount of interest it may earn on these assets.

Other than Common Fund 1, the Common Funds cash flows are not significantly dependent on interest earned from cash and cash equivalents, consequently a sensitivity analysis of the interest rate risk has not been performed.

The table below details the interest rate sensitivity analysis of Common Fund 1 at the reporting date holding all other variables constant. A 100 basis point change is deemed to be possible change and is used when reporting interest rate risk.

Common Fund 1 Change in Interest

Rate

Effect On Effect On

Profit or loss

Equity Profit or loss

Equity

2019 $

2019 $

2018 $

2018 $

Interest Rate Risk + 100 basis points

39,874 39,874 36,608 36,608

- 100 basis points

(39,874) (39,874) (36,608) (36,608)

The following tables disclose the interest rate, repricing dates and effective weighted average interest rate on classes of financial assets and financial liabilities, is as follows:

Common Fund 1

Weighted Average Effective Interest

Rate

Variable Interest Rate Within 1 Year

Non Interest Bearing

Total

2019

$ 2018

$ 2019

$ 2018

$

2019

$ 2018

$

Financial Assets

Cash 1.50%/1.50%

Receivables

Investment

3,987,375

-

-

3,660,893

-

-

-

42,550

31,299,717

-

39,407

31,281,203

3,987,375

42,550

31,299,717

3,660,893

39,407

31,281,203

3,987,375 3,660,893 31,342,267 31,320,610 35,329,642 34,981,502

Financial Liabilities

Payables

-

-

88,097

158,025

88,097

158,025

- - 88,097 158,025 88,097 158,025



49

4949

49


Common Fund 2


Rate

Variable Interest Rate


Total

2019

$ 2018

$ 2019

$ 2018

$ 2019

$ 2018

$

Financial Assets

Cash 0.86%/1.47%

Investments

24,362

-

14,383

-

-

5,691,879

-

5,793,714

24,362

5,691,879

14,383

5,793,714

24,362 14,383 5,691,879 5,793,714 5,716,241 5,808,097


Payables

-

-

9,444

9,537

9,444

9,537

- - 9,444 9,537 9,444 9,537

Common Fund 3


Rate



Total

2019

$ 2018

$ 2019

$ 2018

$ 2019

$ 2018

$

Financial Assets

Cash 0.86%/1.47%

Investments

29,365

-

14,451

-

-

8,486,313

-

6,721,793

29,365

8,486,313

14,451

6,721,793

29,365 14,451 8,486,313 6,721,793 8,515,678 6,736,244


Payables

-

-

13,863

11,040

13,863

11,040

- - 13,863 11,040 13,863 11,040

Common Fund 4


Rate



Total

2019

$ 2018

$ 2019

$ 2018

$ 2019

$ 2018

$

Financial Assets

Cash 0.86%/1.47%

Investments

30,271

-

14,222

-

-

9,041,131

-

8,626,935

30,271

9,041,131

14,222

8,626,935

30,271 14,222 9,041,131 8,626,935 9,071,42 8,641,157


Payables

-

-

14,762

14,170

14,762

14,170

- - 14,762 14,170 14,762 14,170



50

5050

50


Sensitivity Analysis

As the investments with Vanguard Investments are in the form of units in a unit trust, it is not

possible to perform an effective sensitivity analysis as it is not possible to identify the proportion

of the shares held by the trust. The movement in the price of the units is a combination of the

underlying shares invested and the overheads accruing to the trust.

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation

and cause the other party to incur a financial loss. The Common Funds' maximum credit risk exposure at reporting date in relation to each class of recognised financial assets is the carrying amount as disclosed in the Statement of Financial Position and notes to the financial statements. All are current and not impaired.

The Common Funds do not have any material credit risk exposure to a single debtor or group of debtors under financial instruments entered into by the Common Funds.

In order to manage credit risk, the Common Funds bank accounts are held with an Australian “Big 4” bank, a diversified portfolio of managed funds is held and the Public Trustee has a policy of “no new lending”.

Carrying Amount

Note 2019 2018

$ $

Common Fund 1

Cash and cash equivalents 3,987,375 3,660,893

Financial Assets at Fair Value through profit and loss - Designated as FVTPL

6

30,709,717

30,631,203

Receivables 42,550 39,407

Common Fund 2

Cash and cash equivalents 24,362 14,383

Financial Assets at Fair Value through profit and loss - Designated as FVTPL

6 5,691,879 5,793,714

Common Fund 3


Financial Assets at Fair Value through profit and loss - Designated as FVTPL 6 8,486,313 6,721,793

Common Fund 4


Financial Assets at Fair Value through profit and loss - Designated as FVTPL 6 9,041,131 8,626,935



51

5151

51


Liquidity Risk

Liquidity risk is the risk that the Common Funds will encounter difficulty in realising assets or otherwise raising funds to meet commitments associated with financial instruments.

To control liquidity and cash flow risk, the Common Funds invest in financial instruments, which under normal market conditions are readily convertible into cash. The Entity ensures that funds are available to meet client needs and also ensures that at any particular point in time there are sufficient current financial assets to meet current financial liabilities.

All financial liabilities have maturities of less than 3 months.

13. FAIR VALUE MEASUREMENT

The following levels detail the Common Funds’ assets measured at fair value by the following levels:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, whether directly (as Prices) or indirectly (derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The fair values of the investment in securities are categorised under Level 1. There were no

transfers between levels during the reporting year. The fair value of the investment property is categorised under Level 2. The method used for the valuation of the property is known as the “Summation Approach” in which the subject property is compared with other industrial buildings that have recently been sold.

Unless otherwise stated, the carrying amounts of the financial instruments reflect their fair

values. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair value due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instructions.

14. CHANGES IN NET MARKET VALUE OF INVESTMENTS

2019

$

2018

$

Common Fund 1

Realised capital gain during the period - 1,582

Revaluation of investments to market value – Unrealised 464 (28,918)

464 (27,336)

Common Fund 2

Realised capital loss during the period (52,314) (45,974)

Revaluation of investments to market value – Unrealised 372,328 56,220

320,014 10,246



52

5252

52

14. CHANGES IN NET MARKET VALUE OF INVESTMENTS (Continued)

2019

$

2018

$

Common Fund 3

Realised capital gain/(loss) during the period 1,982 (13,044)


509,947 80,749

Common Fund 4

Realised capital gain/(loss) during the period (50,548) (72,583)


349,034 101,154

15. CLIENT COMMON FUND ASSETS

The Public Trustee for the Northern Territory manages the assets of clients under the Public Trustee Act 1979. These assets are not included in the financial statements as the Public Trustee cannot use them for the achievement of its objectives.

2019

$

2018

$

Property 13,984,000 13,680,102

Shares 248,898 209,543

Superannuation/Other Financial Institutions 10,936,419 11,543,816

Other Assets 1,323,325 323,995

Total Assets not included in Financial Statements 26,492,642 25,757,456

16. CONTINGENT LIABILITIES

No contingent liabilities existed as at 30 June 2019 or have arisen since reporting date (2018: Nil).

17. EVENTS AFTER THE REPORTING DATE

No significant events have occurred since reporting date which would impact on the financial position of the Common Funds as disclosed in the Statement of Financial Position as at 30 June 2019, and the Statement of Profit or Loss and Other Comprehensive Income and Statement of Cash Flows of the Common Funds for the period ended on that date.

18. COMMITMENT

There were no material contractual commitments for capital or other expenditure as at 30 June 2019 (30 June 2018: Nil).



53

5353

53

UNCLAIMED MONEYS

AND

MONEYS DEEMED

BONA VACANTIA



54

5454

54

UNCLAIMED MONEYS AND MONEYS DEEMED BONA VACANTIA (IN EXCESS OF $1,000)

HELD BY THE PUBLIC TRUSTEE AS AT JUNE 2019

ESTATE/TRUST NAME BENEFICIARY NAME AMOUNT

$

EST: GINO NESIC 204,398.23

EST: JOHN MAY 193,351.70

EST: WILLIAM TUCKETT MELONIE ANDERSON 105,940.30

TRUST: DEANDRA LANE AKA PEGG DEANDRA LANE AKA PEGG 42,667.55

EST: GUNTER OBSTOJ 35,461.08

EST: RAJKO MILOVAC

34,239.76

TRUST: SARAH PAYTNER SARAH PAYTNER 25,415.34

TRUST: AMBER ECCLES AMBER ECCLES 25,306.36

EST: FAY CHADUM ROBERT CHADUM 23,968.74

EST:- RAYMOND BELL 20,507.66

TRUST: KEVIN BENNETT KEVIN BENNETT 19,863.34

EST: RAYLOND MAYO ABRAHAM MAYO 19,225.27

EST: MAUDIE BOOTH 18,611.68

TRUST: EMMALITA MILLER EMMALITA MILLER 17,923.78

EST: ABE MORRISON 17,105.98

EST: ALLAN STEVENS 16,471.12

EST: LEO RIDDER 15,508.57

EST: DAVID CHADUM ROBERT JNR CHADUM 14,709.33

EST: JOE GORDON JILL GORDON 14,447.43

EST: CAROL LANE 13,951.23

TRUST: TENNAYA STANTON- STEVENS TENNAYA STANTON-STEVENS 13,577.08

TRUST: CUSSACK NGANJMIRRA CUSSACK NGAMJMIRRA 12,103.85

EST: WILLIAM HOLLEY 11,928.52

TRUST: DAVIS WIRRPANDA DAVIS WIRRPANDA 11,784.80

TRUST: DAZARIA CHUNGALOO DAZARIA CHUNGALOO 11,502.79

EST: KEVIN PEPPERILL DICK JLARMA 11,409.64

TRUST: DIANDRA LEWIS DIANDRA LEWIS 10,754.42

TRUST: JAFET MAXWELL JAFET MAXWELL 10,201.32

TRUST: MOSES DUMOO MOSES DUMOO 10,107.30

TRUST: ELIJAH DUMOO ELIJAH DUMOO 10,107.30

EST: BRIAN SLATER CAROL GAFFNEY 10,104.70

EST: BERNARD MEAD HERBERT MEAD 8,597.16

EST: TOMMY DIXON GILBERT DIXON 8,523.40

TRUST: GRACE GORDON GRACE GORDON 8,266.31

EST:- BEDRICH MOHANUPT 7,704.03

EST: PETER BOZOKI 7,647.29

EST: THELMA CROSBIE MONA WALTON 7,583.66

EST: THELMA CROSBIE VIOLET CRAWFORD 7,583.66



55

5555

55


$

EST: MARY ASHLEY NELL DUBULWANGA 7,197.42

EST: LESLIE JAMES MARTIN 6,451.64

EST: LIONEL JEFFREY 6,081.08

TRUST: KYLE COLLINS KYLE COLLINS 5,567.80

EST: TIBOR VESZ 5,367.36

TRUST: DENZEL MARAWILI DENZEL MARAWILI 5,152.52

EST:JEANIE BROWN HELEN/ELLEN BROWN 4,941.97

EST: KARL STOCKER GUY MAURICE BIHINA NDOH 4,719.03

TRUST: JAMIE AKA MISHAI ROBERTSON JAMIE AKA MISHAI ROBERSTON 4,656.63

EST: ALICE KELLY DICKY RAYMOND 4,384.55

EST: ANTHONY DJIGADJIGA 4,363.59

EST: SAMUEL BRADSHAW ROBERT BRADSHAW 4,252.64

TRUST: LOGAN ANDERSON LOGAN ANDERSON 3,941.10

EST: JOHN PATTERSON 3,876.85

EST: BIDDY TEX DENIE TUNGERRAII 3,853.28

EST: BIDDY TEX NORMAN TEX 3,853.28

EST: YVONNE FISHCER WILHELM MARIA KOEPPL 3,788.29

TRUST: CAROL DAIRIYI CAROL DAIRIYI 3,662.85

EST: DONALD PUNDFORD 3,527.07

EST: TOMMY PANANGALKU MOLLY KUMNANARA 3,493.47

EST: MONICA CONWAY JOHN CONWAY 3,418.81

EST: ERMINIO NEPI LEO NEPI 3,372.56

TRUST: JORDAN NARJIC JORDAN NARJIC 3,289.37

TRUST: COHEN KINNY COHEN KINNY 2,805.06

EST: LEW TERECHOW VERA TERECHOW 2,803.76

EST: LEW TERECHOW DIMITRI TERECHOW 2,803.76

EST: LEW TERECHOW GREGORY TERECHOW 2,803.75

EST: BRUCE SNELLING PATRICIA SNELLING 2,551.35

TRUST: REX CORBY JNR REX CORBY JNR 2,515.34

EST: MARTIN BURKE SHELIA FEENEY 2,513.44

TRUST: ERNEST OWEN ERNEST OWEN 2,488.92

EST: JOHN KIRK MICHELLE BROWN 2,470.98

EST: JEANIE BORWN CHRIS COOPER 2,470.98

EST: JON HONI THOMPSON KARA-MEA JO 2,165.21

EST: JON HONI THOMPSON NGARAMA LEE 2,165.21

EST: JON HONI THOMPSON HAYLEY JANE 2,165.21

EST: ALBIE DIXON 2,072.39

EST: JOHN KIRK DOROTHY KIRK 2,024.37

EST: JOHN KIRK CLARENCE KIRK 2,024.37

EST: JOHN KIRK ADRIENE JOHNSON 2,024.37

EST: JOHN KIRK ROSEMARIE KIRK 2,024.36



56

5656

56


$

TRUST: JANE HILL JANE HILL 1,918.08

EST: JOANNIE ROSS 1,870.13

EST: GRAHAM PEDDER 1,829.91

TRUST: ZOE TAYLOR ZOE TAYLOR 1,802.83

EST: FRED WANAMBI LORANISA WANAMBI 1,802.82

TRUST: JOSIAH LALARA JOSIAH LALARA 1,754.29

TRUST: ZACHERIN WANAMBI ZACHERIN WANAMBI 1,739.04

EST: EMILY WILLIAMS ANDREW WILLIAMS 1,547.49

EST: MURIEL PAREROULTJA BENJAMIN PAREROULTJA 1.532.66

EST: LILLIAN ABBOTT GLENDA DAVIS 1,304.71

EST: MAY HILLMAN 1,288.98

EST: BIDDY TEX MARILYN GILL 1,284.42

EST: ALFRED GOLDER ADRIAN CAMPBELL 1,278.18

EST: JEANIE NANGALA BROWN GRANT BROWN 1,235.49

EST: GARNET WHARTON 1,208.18

EST: REGINALD MATTHEWS 1,207.92

EST: ALFRED GOLDER RONALD GOLDER 1,095.58

EST GERARD MARTEL LORRAINE MARTEL 1,071.12

EST:- SARAH GAYKAMANGU JACK MARSH 1,069.56

EST: BRUCE SNELLING PATRICIA SNELLING 1,063.54

EST: NANCY LAMB AMANDA SHEPHERD 1,000.00 000.00

TOTAL 1,411,930.27

Public Trustee for the Northern Territory Annual Report ... · Public Trustee management are...

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